Cyprus loosens some current account restrictions

NICOSIA,
Cyprus -
Cyprus' government has loosened some restrictions on bank current accounts,
though the majority of controls on money flows remain in place.

In a decree Friday, the finance
ministry says that current accounts opened for clients taking out new loans can
also be used for money transfers from abroad or other domestic banks.

The step is intended to ease bank
transactions for businesses.

However, the accounts would still be
subject to money flow restrictions that were imposed to head off a run in March,
when the government seized part of uninsured deposits in Cyprus' two largest
banks as part of its international bailout plan. The amount that can be
withdrawn or transferred abroad from the accounts will remain limited, for
example.